Multiconsult

M&A Activity • Jul 10, 2017

Multiconsult ASA acquires Hjellnes group consisting of Hjellnes Consult AS and Johs Holt AS.

Multiconsult ASA acquires Hjellnes group consisting of Hjellnes Consult AS and Johs Holt AS.

After the initial letter of intent dated 23 May 2017 and following a successful

due diligence process and approvals from the board of directors in Multiconsult

and Hjellnes Holding AS, Multiconsult ASA has entered into a share purchase

agreement to purchase 100% of the shares in Hjellnes Consult AS and Johs Holt

AS.

Based on an enterprise valuation of the Hjellnes group of NOK 170 million,

adjusting for net debt and net working capital, the total purchase price is NOK

184 million. The valuation is based on a normalised 2016 financial result. The

settlement will be a combination of NOK 119 million in cash and NOK 65 million

in Multiconsult shares. The closing date is planned by September 2017.

As part of the settlement, Multiconsult will issue 721 194 shares, which will be

transferred to Hjellnes Holding AS. Hjellnes Holding AS will further transfer

the shares to its shareholders, or companies owned by each of its shareholders,

through a demerger.

The amount of shares to be transferred as part of settlement is based on a

weighted average trading price of the Multiconsult shares on Oslo Børs in the

two-week period preceding the signing of the share purchase agreement.

"We have been following Hjellnes Consult and Johs Holt closely for many years

and are impressed by what the company, its management and employees have

achieved. A combination of Hjellnes Consult, Johs Holt and Multiconsult will be

strategically correct and provide great opportunities for both organisations,

"says Christian Nørgaard Madsen, CEO of Multiconsult."

"After 70 years since the start of Hjellnes Consult, time has come to position

ourselves for further growth and development in a market that is constantly

changing both competition- and market-wise. We will achieve this by becoming

part of Multiconsult. Together with Multiconsult, we will be even better

equipped to ensure continued growth, safeguarding our core values while

maintaining a high professional level for both customers and employees", says

CEO Geir Knudsen and Gunnar Egset in Hjellnes Consult and Johs Holt,

respectively.

A power center in eastern Norway

In the Oslo area, Multiconsult and the Hjellnes group are almost even in size,

with complementary organisations. The companies' business areas are mostly

complementary in expertise and capacity. By utilising a common customer base, a

central power center with a strong market position in Eastern Norway will be

formed.

Increased competitiveness

Multiconsult and Hjellnes group have been operating in the same industry for a

long time and all parties are confident that the companies fit well together,

both strategically, professionally and culturally. Combining the forces

increases the interdisciplinary capacity and expertise within the core business

areas Buildings & Properties, Transportation, as well as Water & Environment.

Multiconsult aspires to exploit this to take new market shares and increase the

competitiveness of the company's strategic investments in urbanism and

healthcare, in line with the company's 3-2-1 GO strategic objectives by 2020.

Johs Holt's professional environment and reputation as specialists in bridge

designs are recognised as very strong. Together with the resources of

Multiconsult a solid position within the transportation market will be fortified

and be the starting point for further growth.

The acquisition is subject to approval from the Norwegian Competition Authority.

For further information, please contact:

Investor relations:

Mirza Koristovic, Head of Investor Relations

Phone: +47 93 87 05 25

E-mail: ir@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no